The recently approved spot Bitcoin ETFs have seen a surge in demand, resulting in record-breaking trading volumes. On February 28, the ETFs recorded an astounding $7.69 billion in volume. This is nearly double the previous day’s volume.
Leading the charge in trading volumes is BlackRock’s iShares Bitcoin Trust (IBIT), with over $3.3 billion – accounting for nearly 44% of the total volume. Grayscale’s Bitcoin Trust (GBTC) and Fidelity’s Bitcoin Fund (FBTC) also hit over a billion in trading volume.
This increase in demand seems to be organic and not driven by algorithmic or arbitrage trading, according to ETF analyst Eric Balchunas. He also noted that wirehouse platforms are considering adding these ETFs due to the growing demand.
The frenzy is also evident in the Bitcoin futures ETFs market, with BITO, BITX, and BITI all experiencing an increase in volume. The total volume for Bitcoin ETFs approached the $10 billion mark.
As a result of this demand, the price of Bitcoin has also seen a sharp increase. On Monday, it reached highs of $64,000 before experiencing a slight dip due to Coinbase network issues. However, analysts predict that as the Bitcoin halving approaches, the price could potentially reach a new all-time high above $100,000 in 2024.
Currently, BTC is trading around $62,570, representing a 5.3% increase in the past 24 hours and 22% increase in the past week.
In addition to the spot Bitcoin ETFs, the Bitcoin futures ETFs are also expected to contribute to the cryptocurrency’s growth. The potential for growth has caught the attention of wirehouse platforms, who are looking to add these ETFs to their offerings.
In conclusion, the approval of spot Bitcoin ETFs has resulted in a surge in demand and trading volumes, which has also caused the price of Bitcoin to rise. This has attracted the interest of wirehouse platforms, who are considering adding these ETFs to their offerings. As a result, the future looks bright for Bitcoin as it continues to gain mainstream acceptance and adoption.
